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Great Value Proposition Design

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Practical workshop at UX London 2016, delivered by Doug Morwood of Business Models Inc UK. Great Value Proposition Design leads to great business success. Why? Because only by truly understanding the needs of the customer can we design solutions that last.

Practical workshop at UX London 2016, delivered by Doug Morwood of Business Models Inc UK. Great Value Proposition Design leads to great business success. Why? Because only by truly understanding the needs of the customer can we design solutions that last.

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Great Value Proposition Design

  1. 1. UX LONDON 2016 Wed 18th May 2016 Great Value Proposition Design @busmodincuk @dougmorwood
  2. 2. YOU ARE ALL DESIGNERS!
  3. 3. LET’S DRAW!
  4. 4. WHAT ARE WE GOING TO DO TODAY?
  5. 5. NEW TOOLS NEW SKILLS NEW MINDSET
  6. 6. HOW OUR STORY STARTS
  7. 7. WE WANTED TO DISRUPT THE PUBLISHING INDUSTRY
  8. 8. USD
  9. 9. USD
  10. 10. USD
  11. 11. USD
  12. 12. USD
  13. 13. OVER 1 MILLION 30 TRANSLATIONS
  14. 14. ADDED VALUE IN VALUE PROPOSITION DESIGN
  15. 15. LAUNCHED LAST OCTOBER
  16. 16. WE (RE-) DESIGN BUSINESSES
  17. 17. FEW JOURNEYS ARE LINEAR!
  18. 18. WHY IS INNOVATION SO IMPORTANT?
  19. 19. DISRUPT BEFORE YOU ARE DISRUPTED
  20. 20. THE BUSINESS MODEL CANVAS
  21. 21. Blah Blah Blah Blah Blah Blah Blah Blah Blah Blah Blah Blah Blah Blah Blah Blah Blah Blah Blah Blah Blah Blah Blah Blah Blah Blah Blah …
  22. 22. A BUSINESS MODEL DESCRIBES THE RATIONALE OF HOW AN ORGANIZATION CREATES, DELIVERS, AND CAPTURES VALUE
  23. 23. CUSTOMER SEGMENTS1
  24. 24. VALUE PROPOSITIONS2
  25. 25. CHANNELS3
  26. 26. CUSTOMER RELATIONSHIPS4
  27. 27. REVENUE STREAMS5
  28. 28. KEY RESOURCES6
  29. 29. KEY ACTIVITIES7
  30. 30. KEY PARTNERS8
  31. 31. COST STRUCTURE9
  32. 32. CUSTOM ER SEGMEN TS KEY PARTNERS COST STRUCTURE REVENUE STREAMS CHANNE LS CUSTOMER RELATIONSH IPS KEY RESOURCE S VALUE PROPOSITIONS KEY ACTIVITIES
  33. 33. LET’S SWITCH PERSPECTIVE
  34. 34. WHO ARE YOUR #1 CUSTOMERS?
  35. 35. PICK ONE!
  36. 36. EXERCISE Empathetic Insight
  37. 37. CLIENT STORY
  38. 38. MANUFACTURER FROM EUROPE
  39. 39. CONFIDENTIAL 57
  40. 40. CONFIDENTIAL 58
  41. 41. CONFIDENTIAL 59 AMCO AMCO AMCO AMCO AMCO AMCO
  42. 42. CONFIDENTIAL 60
  43. 43. CONFIDENTIAL 61 AMCO
  44. 44. CONFIDENTIAL 62
  45. 45. EXERCISE Who is your customer?
  46. 46. STOP! ASSESS YOUR VALUE PROPOSITION DESIGN SKILLS
  47. 47. ON A SCALE OF 0-10, WHERE 0 IS STRONGLY DISAGREE AND 10 IS STRONGLY AGREE, RATE HOW MUCH YOU AGREE WITH THE FOLLOWING STATEMENTS.
  48. 48. JUST A FEW OF THE BASICS I DON’T FEAR FAILURE, BUT SEE IT AS PART OF THE CREATIVE JOURNEY. I KNOW THAT GREAT VALUE PROPOSITIONS ALSO NEED GREAT BUSINESS MODELS. I AM COMFORTABLE WITH UNCERTAINTY AND IT DOESN’T ROB MY SLEEP. V V V V V ___ ___ ___ ___ ___ ___ V I KNOW THE TOOLS AND PROCESSES OF CREATION AND APPLY THEM (ALMOST) DAILY. I AM A DESIGNER AT HEART I DON’T FALL IN LOVE WITH MY FIRST IDEAS – I PROTOTYPE ALTERNATIVES. I AM COMFORTABLE WITH UNCERTAINTY AND IT DOESN’T ROB MY SLEEP. V ___ V ___I RELENTLESSLY TAKE A CUSTOMER PERSPECTIVE. Source: Strategyzer
  49. 49. MOST COMPANIES START WITH A BUSINESS PLAN
  50. 50. SOME MAP OUT THE BUSINESS MODEL
  51. 51. MOST TRY TO WORK OUT HOW TO SELL THEIR PRODUCT IN A MARKET (OFTEN BY DOING WHAT OTHERS DO).
  52. 52. HOW MANY TRULY START WITH THE CUSTOMER?
  53. 53. MOST COMPANIES HAVE NO IDEA WHO THEIR CUSTOMER IS. DATA IS NOT ENOUGH
  54. 54. STOP! STEP BACK INTO YOUR CUSTOMERS’ SHOES
  55. 55. IDENTIFY CUSTOMER JOBS ASK WHAT TASKS YOUR CUSTOMERS ARE TRYING TO COMPLETE. MAP OUR ALL OF THEIR JOBS BY WRITING EACH ONE ON AN INDIVIDUAL STICKY NOTE.
  56. 56. IDENTIFY CUSTOMER JOBS WHICH JOBS MATTER MOST IN THIS CONTEXT? PICK 1 OR 2…
  57. 57. IDENTIFY CUSTOMER PAINS WHAT PAINS DO YOUR CUSTOMERS HAVE? WRITE DOWN AS MANY AS YOU CAN COME UP WITH, INCLUDING OBSTACLES, RISKS AND NIGHTMARES.
  58. 58. IDENTIFY CUSTOMER GAINS WHAT OUTCOMES AND BENEFITS DO YOUR CUSTOMERS WHAT TO ACHIEVE? WRITE DOWN AS MANY GAINS AS YOU CAN COME UP WITH.
  59. 59. ASSESS YOUR WORK IS THE CUSTOMER YOU CHOSE TO PROFILE SPECIFIC ENOUGH TO CREATE A MEANINGFUL PROFILE? ARE ALL YOUR JOBS, PAINS AND GAINS AS CONCRETE AS POSSIBLE? DID YOU GO BEYONG FUNCTIONAL JOBS TO EMOTIONAL AND PHYSICAL ONES? DID YOUR CUSTOMER PAINS COVER OBSTACLES, RISKS AND UNDESIRED OUTCOMES? DID YOU KEEP YOUR CUSTOMER PROFILE SOLUTION AGNOSTIC? V V V V V YES/NO YES/NO YES/NO YES/NO YES/NO Source: Strategyzer
  60. 60. WHICH ARE MOST VALUABLE?
  61. 61. LIST PRODUCTS & SERVICES LIST ALL THE PRODUCTS AND SERVICES OF YOUR EXISTING VALUE PROPOSITION.
  62. 62. OUTLINE PAIN KILLERS OUTLINE HOW YOUR PRODUCTS AND SERVICES CURRENTLY HELP CUSTOMERS ALLEVIATE PAINS BY ELIMINATING UNDESIRED OUTCOMES, OBSTACLES OR RISKS. USE ONE STICKY NOTE PER PAIN KILLER.
  63. 63. OUTLINE GAIN CREATORS EXPLAIN HOW YOUR PRODUCTS AND SERVICES CURRENTLY CREATE EXPECTED OR DESIRED OUTCOMES AND BENEFITS FOR CUSTOMERS. USE ONE STICKY NOTE PER GAIN CREATOR.
  64. 64. ASSESS YOUR WORK HAVE YOU LISTED ALL OF THE PRODUCTS AND SERVICES THAT YOUR OVERALL VALUE PROPOSITION BUILDS ON? ARE THOSE PRODUCTS AND SERVICES TARGETED AT A SPECIFIC CUSTOMER SEGMENT? DO YOUR GAIN CREATORS DESCRIBE EXACTLY HOW YOUR PRODUCTS AND SERVICES HELP CUSTOMERS ACHIEVE GAINS? DO YOUR PAIN KILLERS DESCRIBE EXACTLY HOW YOUR PRODUCTS AND SERVICES KILL CUSTOMER PAINS? DO EACH OF YOUR PAIN RELIEVERS AND GAIN CREATORS ADDRESS AT LEAST ONE OR MORE CUSTOMER PAINS OR GAINS? V V V V V YES/NO YES/NO YES/NO YES/NO YES/NO Source: Strategyzer
  65. 65. CHECK FOR FIT MAKE SURE YOUR PAIN KILLERS AND GAIN CREATORS FIT WITH A CUSTOMER JOB, PAIN OR GAIN. YOU ACHIEVE A FIT WHEN YOUR CUSTOMERS GET EXCITED ABOUT YOUR VALUE PROPOSITION, WHICH HAPPENS WHEN YOU ADDRESS IMPORTANT JOBS, ALLEVIATE EXTREME PAINS AND CREATE ESSENTIAL GAINS THAT CUSTOMERS CARE ABOUT. FIT IS HARD TO FIND AND MAINTAIN. STRIVING FOR FIT IS THE ESSENCE OF VALUE PROPOSITION DESIGN.
  66. 66. ASSESS YOUR WORK IS THERE A CONNECTION BETWEEN YOUR PRODUCTS AND SERVICES AND YOUR CUSTOMER’S JOBS, PAINS AND GAINS. DO ANY OF YOUR PRODUCTS AND SERVICES, GAIN CREATORS, OR PAIN RELIEVERS NOT ADDRESS ANYTHING FOR THE TARGET CUSTOMER? ARE YOUR PRODUCTS AND SERVICES CREATING REAL CUSTOMER VALUE BY ADDRESSING WHAT MATTERS MOST TO THEM? INSTEAD OF TRYING TO ADDRESS ALL OF YOUR CUSTOMER’S JOBS, PAINS AND GAINS ARE YOU FOCUSING ONLY ON WHAT MATTERS MOST? V V V V YES/NO YES/NO YES/NO YES/NO Source: Strategyzer
  67. 67. EVERYBODY: 30 SECOND PITCH!
  68. 68. AD LIBS Product or Service Our named Customer Job to-be Done Reducing/Avoiding Pain Increasing/Achieving Gain and/or Our help(s) want(s) to who by Tip: add at the beginning or end of sentence unlike
  69. 69. HERE’S OUR OWN ATTEMPT 
  70. 70. BEFORE YOU GO…
  71. 71. BASED ON YOUR NEW INSIGHT
  72. 72. WHAT ASSUMPTIONS ARE YOU MAKING THAT ARE CRITICAL?
  73. 73. WHICH IS THE MOST CRITICAL?
  74. 74. HOW COULD YOU TEST THIS QUICKLY AND CHEAPLY?
  75. 75. Video and voice recorders are great for capturing your conversations. Use with permission and don’t use the technology as a replacement for your notebook! Getting the full picture, capturing body language, can be used for later presentations to show a real, existing need. Subtle, unobtrusive way of recording, easily editable, recording can be used in later presentations. Interviewee may feel “under the spotlight” and may be more careful about their answers. Ask permission before film i ng in a public place. Video editing may be tricky. Interviewee may hold back from giving full answers to avoid recording being used against them. Make sure you can transfer your recording between the device and a pc. VIDEORECORDER VOICERECORDER GREATFOR: GREATFOR: WATCHOUTFOR: WATCHOUTFOR: TOPTIP A simple conversation with the right person can open up many lines of thought and investigation that may never had occurred to you before. Not only is effec t ive, but speaking with your customer is also one of the easiest ways of fin d i ng out wh at ma kes them tick! INTERVIEWSANDCONVERSATIONS ANINTRODUCTION 1 Remember, when speaking with your customer that you are not trying to solve their problems or offer them gain creators. In terms of the Value Proposition Designer, we are focussing on the right side of the tool - completely focussed on fin d i ng out the gai ns, pai ns and your cust ome r ’ s job to be done. VALUEPROPOSITIONDESIGNER INTERVIEWS YOURCOMPLETEGUIDE TOHAVINGMEANINGFUL CONVERSATIONS&INTERVIEWS CUSTOMERSAFARI YOURCOMPLETEGUIDETO OBSERVINGYOURCUSTOMER INTHEWILD
  76. 76. WHAT IS YOUR SIMPLE COMMITMENT?
  77. 77. DOUG MORWOOD STRATEGY DESIGNER Business Models Inc. UK doug.morwood@businessmodelsinc.com @dougmorwood

Notas

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